The Loonie rose for the first time since June 29 as expectations of potential improvements in the Eurozone crisis were created by Ewald Nowotny's argument on giving the Eurozone bailout fund ECB banking license. On Thursday, the Canada's Dollar increased 0.7% to C$1.0155 per U.S. Dollar.
Japanese stocks increased first time in five days, led by Nikkei 225 (NKY) advancing most since June 29, on earnings optimism, created by Fanuc (6954) Corp. Showing higher profit and JFE Holdings Inc. expecting income topped estimates. The Nikkei 225 gained 0.9% to 8,443.10 and the Topix Index (TPX) advanced 1.2% to 714.91.
N.Z. central bank holds nation's benchmark interest rate stable at 2.5 for an 11-th straight meeting. Governor Alan Bollard reports that domestic economy is expected to "grow modestly over the next few years" led by the growth in construction industry due to the rebuilding of earthquake-hit. The comment has immediately strengthened the Kiwi, to be bought 79.10 U.S. cents.
On Thursday, the Euro slipped 0.2% to $1.2134, but still staying above the two-year low of $1.2024. The Euro climbed on Wednesday as ECB Governing Council member Ewald Nowotny said he sees reasons for giving ESM a banking license that would expand its crisis-fighting possibilities. However, ECB President Mario Draghi denied the idea, while other legal problems might also prevent the process.
The Eurozone's worsening sovereign debt crisis hits corporate earnings, escalating concerns that the region's problems may significantly undermine performance of companies around the globe next year. Large U.S. companies including Ford Motor Co. and Apple Inc. stated that European consumers' slowed spending was the main reasons for disappointing results. Meanwhile European corporations claimed that they suffer more than anticipated.
Central banks across the globe are searching for innovative ways to stimulate bank lending and keep ailing global economy afloat. Officials from the Fed, the ECB and the BOE will meet next week in order to discuss new strategies to struggle with the slowdown. One of the options to consider is to take some of the risk of new lending
The U.K. economy growth was the slowest in the second quarter since 2009, against economists' expectations of a 0.2% decline. According to the Office for National Statistics, GDP declined 0.7% from the Q1, when it fell 0.3%. Signs of escalating recession may forces the government to undertake more decisive measures to bolster economic growth even after the BOE implemented asset
The economy of South Korea expanded at its slowest pace in 3 years as the Eurozone debt crisis limits export growth and forces officials to consider easing measures. Korea's GDP grew 2.4% from a year earlier in 3 months ending in June, the slowest growth since 2009, with the second quarter GDP expansion of only 0.4%.
U.S. new-home sales declined in June following a jump to two-year high in May, indicating uneven housing recovery. Purchases drop 8.4% from the prior month to a 350,000 annual rate, the Commerce Department reported. Slow progress in labour market as well as lack of inventory is depressing purchases even though mortgage rates and prices remain attractive.
German equities edged up 0.49% to trade at 6,417.50 at the time of writing. Shares gained momentum on hopes for fresh measures by the ECB. At the same time, a drop in Ifo Business Climate Index capped the upswing. Daimler added 3.6% after the company left unchanged its full-year profit forecast. Financial sector was the weakest, plunging 0.95%. Deutsche Bank
FTSE 100 Index added 0.22% to trade at 5,508.30 at the time of writing. UK stocks found strong support after Ewald Nowotny, ECB policymaker, raised measures that may boost firepower of the bailout fund. However, a 0.7% contraction in UK's GDP in Q2 limited rally of riskier assets. Financial and technology stocks drugged the index higher, with Royal Bank of
Hang Seng Index edged down 0.14% on Tuesday to close at 18,877.33 amid spreading Eurozone's crisis and potential slowdown in China's economy. Moreover, disappointing Apple earnings report added to the negative mood of China's equity market. China property developers faced losses after Nanjing housing bureau reported that recent news on price increases were a ‘misunderstanding'. Sino Land and China Resources
Nikkei 225 Index attained seven-week low on Wednesday, posting a sharp decline of 1.44%. Japanese stocks were exposed to negative data from the Eurozone and dismal results of Apple in the last quarter. Toshiba plunged 7.3% to the lowest level in 40 months after Apple reported worse than expected results in Q2. Panasonic, being also Apple supplier, fell 5.5% to
Dow Jones Industry Average Index extended previous losses on Tuesday, falling 0.82% to trade at 12,617.32. All sectors within the index tumbled. The largest decliners were basic materials and oil and gas sectors. Chevron fell 1.53% despite slight increase in oil price after positive China's PMI data release. EI du Pont de Nemours & Co dropped 1.99% after reporting a
S&P 500 Index prolonged its slump on Tuesday, ending the day 0.9% lower. Disappointing corporate earnings reports coupled with grim news from the Eurozone pressurized US equities. All industries within the index have faced losses for the second consecutive day. Shares of DeVry posted the largest drop of 27% on news that Q4 results are likely to be much worse
German business confidence declined more than expected in July, falling to the lowest level since March 2010. The Ifo business climate index dropped from 105.2 in June to 103.3, representing a third consecutive decline, while economists expected a decline to 104.5. The main reason for such a sharp decline in confidence is deteriorating sovereign debt crisis, which damps economic growth
On Wednesday, spot gold rose 0.2% to $1,583.69 per ounce, expanding gains to a second session. The latest reports showed that U.S. and Eurozone were still in a downturn in July, which had advanced interest for gold. Gold is seen as "inflation hedge", excessive cash printing by central banks directly benefits its sales.
According to the Office for National Statistics, the U.K. GDP unexpectedly slumped 0.7% in the second quarter, the biggest contraction since 2009, following a 0.3% contraction in the Q1, indicating that economy experiences recession. The U.K. economy shrank 0.8% on annual basis.
On Wednesday, a European Central Bank policymaker said that there were reasons for issuing a banking license for Europe's permanent rescue fund, that would let them acquire unlimited ECB loans. The comment has boosted demand for the Euro which jumped to $1.2115. The FTSE Eurofirst .FTEU3 index lifted 0.1% at 1,019.52 points.In meantime EU officials report that Greece is unlikely
The IMF stated that China's economy may confront considerable risks to growth with the national currency being moderately undervalued. Moreover, the IMF officials highlighted China's over reliance on investment. The economy is expected to experience a soft landing; however, to make it happen is a main challenge, said the IMF. Still, China is ready to respond to further worsening of
German Finance Minister and Spanish Economy Minister argue that the Spanish bond yields do not correspond to the current state of Spain's economy. However, the statements of ministers have not calmed markets as Spanish securities continue to rise for 10 consecutive days. 2-year bond yield soared to 7.09%, breaking 7% level for the first time. 5-year climbed to 7.74%, while
Asian currencies tumbled, led by the South Korea's Won, on the Eurozone's crisis diminishing demand for riskier assets in emerging markets. The Won declined to a week low after a central bark had reported that local consumer confidence was at the lowest level in five month. The Bloomberg-JPMorgan Asia Dollar Index (MXAP), which follows Asian currencies, dropped to the least
Drop in oil prices has resulted in the first decline in imports since 2009 for Japan. On Wednesday, Finance Ministry in Tokyo reported that imports decreased 2.2% from a previous year, as result a trade surplus amounted to 61.7 billion Yen ($789 million). The Yen rose to 78.10 versus the U.S. Dollar after the announcement.
Concerns about China's economic downtrend and Europe's debt crisis pressured Asian stocks to drop for a fourth day. Technology shares pulled back after Apple Inc. missed expected values in profits and sales. On Wednesday, the MSCI Asia Pacific Index (MXAP) tumbled 0.8% as Japan's Nikkei 225 Stock Average dropped 1%. South Korea's three-year note and Singapore's 10-year bond yields touched